Kroger Explains Nothing

The Kroger Co (KR) released Q1 results and essentially said nothing in the press release other than just throwing a few regulatory must have numbers up on the wall. Q1 sales are $23.1 Billion. Grocery retailing is a tough business. Food costs are subject to the ag commodities boom plus fuel costs are only going up. Is it that investors expect nothing from this company and the executives know it?

The only comment was a quick sentence about how their strategy is OK and the customers are saving a billion dollars. Have no idea how that comment may be substantiated but watch for a consumer watchdog group to ask for some proof.

Read this quote and see if you can develop a sense of what is happening with this investment “Our strategy positions us well to deliver consistent results and make investments for our future. Kroger continues to help customers stretch their budgets in a number of ways, including lower prices and our expanded generic drug and gas discount programs," said David B. Dillon, Kroger chairman and chief executive officer. "Through these kinds of price reductions, our customers are saving $1 billion annually."